Who shall file
This return shall be filed in triplicate copies by all persons (natural or juridical) whether resident or non-resident, including Estates and Trusts, who sell, exchange, or dispose of a real property located in the Philippines classified as capital asset as defined under Sec. 39 (A) (1) of RA No. 8424.

The term “sale” includes pacto de retro sale and other forms of conditional sales. The transaction may be taxable or exempt.

When and Where to File:

The return shall be filed by the seller with any Authorized Agent Bank (AAB) of the Revenue District Office (RDO) having jurisdiction over the place where the property being transferred is located.

In places where there are no AABs, the return shall be filed with the Revenue Collection Officer or duly Authorized City or Municipal Treasurer of the Revenue District Office having jurisdiction over the place where the property being transferred is located.

The return shall be filed within thirty (30) days following each sale, exchange or disposition of real property.

In case of installment sale where the taxpayer is allowed to pay the tax by installment under certain conditions and requirements, the return shall be filed within thirty (30) days following the receipt of the first down payment or following each subsequent installment payment, whichever is applicable.

One return shall be filed for every real property sold, exchanged or disposed of (for cash sale, or foreclosure sale), or every installment payment made (for installment sale).

When and Where to Pay

The total amount payable shall be paid to the Authorized Agent Bank (AAB) where the return is filed. In places where there are no AABs, payments shall be made directly to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer who shall issue Revenue Official Receipt (BIR Form No. 2524) therefor.

For payments in AABs, the lower portion of the return must be
properly machine-validated and stamped by the Authorized Agent Bank to serve as the receipt of payment. The machine validation shall reflect the date of payment, amount paid and transaction code, and the stamp mark shall show the name of the bank, branch code, teller’s name and teller’s initial. The AAB shall also issue an Official Receipt or bank debit advice or credit document, whichever is applicable, as additional proof of payment.

Tax Base/Rate

There shall be imposed a final tax rate of six percent (6%) based on whichever is higher of the following:

1) The fair market value as determined by the Commissioner (zonal value);

2) The fair market value as shown in the Schedule of Values of the Provincial and City Assessors; or

3) The selling price of the property or fair market value of the property received in an exchange transaction.

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